Confessions from the Colombo Stock Exchange
The recently resigned chairman of the Securities and Exchange Commission, Tilak Karunaratne, has said he is willing to provide evidence of malpractices in the Colombo Stock Exchange.
Speaking to the Daily Mirror on practices between June 2010 and December 2010, Karunaratne said:
“Yes of course, this was most certainly day light robbery. During the conflict the market was dull and there was quite rightly euphoria after the war ended. Then the market gradually rose up."
"Then suddenly we find that between June and December 2010 it shot up suddenly. And this was due to manipulation. What they did was they found certain stocks which are not liquid. These stocks have no intrinsic value and they started manipulating and arbitrarily increasing the price by having trades among themselves and their crony brokers."
